Washington Post 2015 Annual Report Download - page 126

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The net periodic (benefit) cost for the Company’s pension plans, as reported above, includes pension cost of $1.9
million, $3.7 million and $22.7 million reported in discontinued operations for 2015, 2014 and 2013,
respectively. The net periodic cost for the Company’s SERP, as reported above, includes cost of $0.2 million,
$0.5 million and $1.4 million reported in discontinued operations for 2015, 2014 and 2013, respectively. The
curtailment gain of $2.2 million related to the Cable ONE spin-off is also included in discontinued operations for
2015. The curtailment gain of $1.1 million related to the sale of the KHE Campuses business is included in other
(expense) income, net. The early retirement programs and special separation benefit expenses are also included
in discontinued operations for 2013. The 2013 curtailments and settlements are included in the gain on sale of
Publishing Subsidiaries, which is also reported in discontinued operations.
The costs for the Company’s defined benefit pension plans are actuarially determined. Below are the key
assumptions utilized to determine periodic cost:
Pension Plans SERP
Year Ended December 31 Year Ended December 31
2015 2014 2013 2015 2014 2013
Discount rate (1) 4.4%/4.0% 4.8% 4.0% 4.4%/4.0% 4.8% 4.0%
Expected return on plan assets 6.5% 6.5% 6.5% –––
Rate of compensation increase 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
(1) As a result of the spin-off of Cable ONE and the sale of the KHE Campuses business, the Company remeasured the accumulated and
projected benefit obligation of the pension plan as of July 1, 2015 and September 3, 2015, respectively. As a result of the spin-off of
Cable ONE, the accumulated and projected benefit obligation of the SERP was remeasured as of July 1, 2015. The remeasurement
changed the discount rate from 4.0% for the first six months to 4.4% for the second half of 2015.
Accumulated other comprehensive income (AOCI) includes the following components of unrecognized net
periodic cost for the defined benefit plans:
Pension Plans SERP
As of December 31 As of December 31
(in thousands) 2015 2014 2015 2014
Unrecognized actuarial (gain) loss ............ $(451,076) $(685,895) $ 26,497 $ 36,890
Unrecognized prior service cost .............. 662 1,033 1,232 1,689
Gross Amount ............................ (450,414) (684,862) 27,729 38,579
Deferred tax liability (asset) ................. 180,166 273,945 (11,091) (15,432)
Net Amount .............................. $(270,248) $(410,917) $ 16,638 $ 23,147
During 2016, the Company expects to recognize the following amortization components of net periodic cost for
the defined benefit plans:
2016
(in thousands) Pension Plans SERP
Actuarial loss recognition ......................... $ – $2,329
Prior service cost recognition ...................... $291 $ 457
111 GRAHAM HOLDINGS COMPANY